rental housing journal valley january 2016

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4. Desire to Buy Strong Despite A� ordability, Economic Concern

5. 4 Faces of Leadership and the Importance of the Vision Thing

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Rental Housing Journal Valley January 2016

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continued on page 7continued on page 2

continued on page 3

6. Dear Maintenance Men – Pest Control & Preventative Care

Build Community in Th ree Steps

By Jen PiccottiSVP Education and Consulting, SatisFacts and ApartmentRatings.com

As an industry, we’re consistently focused on developing a sense of community. A critical budget

line item is Resident Events. And yet, participation in our pizza parties, break-fast-on-the-run, Disney movie sing-alongs, or Super Bowl viewing parties are minimal, at best. To make matters worse, when asking residents about their satisfaction with “Sense of Community,” the national average is 3.40 on a 5-point scale. Th at translates to a “Warning” clas-sifi cation on our rating scale. Ouch!

Lately, as we’ve been presenting work-shops and seminars, we poll the audi-ence by asking, “As you think about the upcoming weekend, how many of you are looking forward to hanging out with your neighbors?”

Th e typical response from a room full of around 150 people is 3 or 4 raised hands. Aft er a year of conducting these non-scientifi c experiments, we feel con-vinced that what we’re seeing in the classrooms is not very diff erent from what you’re seeing on-site. Yet why are we convinced our residents feel any diff er-ently? According to the 2015 SatisFacts Index, when asked why residents weren’t “Very Likely” to renew, “Neighbors” was in the top 5 reasons. And when asked what could be done to improve the com-munity, “Better Residents” ranked in the top ten. Let’s face it, residents are not welcoming each other to the community with goodie baskets and borrowing cups

Do-it-Yourself Landlords May be Working Below their Paygrade

The economic conditions of recent years have led many Americans to look to the real estate market for

investment opportunities. Considering there are now nine million more renters than there were a decade ago and rental rates continue to increase, now may seem like the time all those property investors have been long awaiting, right?

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Approximately 80 percent of inves-tors who lease single-family residences

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Real Property Management, a nation-al property management franchise, re-leased fi ndings that suggest many DIY landlords may be working below their pay grade, spending too much money and time managing their rental prop-erties, and ultimately receiving mini-mal return-on-investment (ROI). Th e fi ndings are from the company’s online Landlord Calculator, a resource that al-lows landlords to input how much time they’re spending on each aspect of prop-erty management, in comparison to overall income money spent.

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Rental Housing Journal Valley

Rental Housing Journal Valley · January 2016

Dynamite Digital Experience ...continued from page 1

provider you deliver a complete service throughout the entire community.

How do you identify the right provid-er? When you interview them, they’ll recommend the following best practices.

“Transparent Access”With the exception of some younger

millennials who were raised with in-formation technology as a major part of their lives, most users want to enjoy the benefits of wi-fi internet access without having to think about the technology that delivers it. Keeping the technology invisible starts with making the initial connection to the service “push-button” easy. The right provider will offer step-by-step pictorially illustrated instruc-tions for connecting various devices to the service, and may offer a premium “welcome” service in which someone does all the connecting for the renter.

From that point forward the user should seldom if ever need to reconnect.

You may also be able to look to your provider to include a “front-end” website that your renters encounter first when-ever they log in to their device. This “portal” can be set up to make a host of excellent services available to your rent-er, including services you provide your-

self. These services are not limited to the internet. You may want to make it easy for your renters to request various physi-cal plant services or community activity services from you.

Comprehensive Security & PrivacyThe privacy of personal information

including online banking, personal health information and more is becom-ing a “front-of-mind” issue with every-one. When you’re speaking to the “right provider” you’ll hear plenty about how they protect users from viruses, spam, malware, hacking, and all the other in-ternet threats out there. Parental con-trols over website access is another par-amount issue you can expect to hear about.

Be sure to ask about the interactivity of security services. Often, the renter’s specific bank or other internet resourc-es may require some “custom-tuning” to the firewall and other security ser-vices in order to perform properly. This should be as easy as calling in to the support team.

Easy-Access Technical SupportSpeaking of the support team, remem-

ber that you’re providing your renters with a comprehensive service that you

can be proud of. If they run into a prob-lem and have a hard time solving it, all the time they spent enjoying good ser-vice will suddenly be forgotten. The re-sponsiveness and ease of access to the provider’s support team make all the dif-ference. This may be a technical service, but it’s being used by people, so the peo-ple they interact with when something is wrong need to be top drawer, easy to reach, and easy to work with.

User Counseling & AdviceSupport should be as proactive as it is

reactive. Beyond responding to requests for restoration of services, the support team should also be available to advise your renters about adding new devices, products, or services to their wi-fi net-work. Smart Home automation is be-coming very popular, with more and more users being able to switch lights on and off, lock and unlock their doors, control their thermostats and much

more from their smartphones wherev-er they may be. Home Theater systems are replacing long wires strung around the home with wi-fi-connected speak-ers. Refrigerators and other appliances are using wi-fi to serve customers better. Your provider’s support team should be able to help your renters get the most out of these emerging new digital lifestyle enhancements.

Future-ProofingIt is a sure bet that technology will

keep on improving, and you won’t ever want your renters complaining that your wi-fi service is antiquated and out-of-date. Smart providers are assuring that it is easy and inexpensive to update your equipment and your wi-fi internet access services to keep step with the times.

The availability of a comprehensive built-in wi-fi capability in your units will be a huge differentiator for your proper-ties for a long time to come, especially if you make the right choices, imple-ment the right technologies and services working the with right partners.

Eric Markow is Chief Technology Officer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who enjoy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows property owners to leverage their “Internet real estate” to maximize profits, increase resident satisfaction and retention, and increase property value. Headquartered in Phoenix, Arizona, Dual Path offers property-wide WiFi, Gigabit Internet and WiFi calling solutions to properties and businesses coast to coast. For more information, visit www.dualpath.net or contact 1-800-468-6851.

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Building Community ...continued from page 1

of sugar – the “love” is just not there.For added confirmation, we look to our

data and an in-depth analysis of surveys from over 1.6 million residents. What we see is that when residents are eval-uating “Sense of Community,” they’re not expressing their desire to become best friends with their neighbors or even having more or better events. When res-idents are evaluating sense of communi-ty, they are actually evaluating their re-lationship with you, the property team. They’re thinking about how connected they feel to those who care for and main-tain the community, not the population that makes up the community itself. So, how do we build that connection?

1. Be the Go-To Guy or Gal.Ideally, everyone on staff should have

the ability to provide assistance to any resident, but it’s such a luxury to be able to get in contact with your “go-to” per-son, A “go-to” already knows your back story, they know what’s already been done or what your particular challenges are. As Lisa Giedd, of The Bluffs at Nine Mile Creek (Dominium) shared as a best practice, “If a resident asks for a specific team member or the manager, do what you can to connect them with that team member. Even if someone else was able to answer the question or resolve the is-sue, the resident will mostly remember that the team member or manager was not available to them.”

2. Expect the BestOne of the best pieces of advice I ever

received from a supervisor was, “Go into the meeting expecting that it will go well. 9 times out of 10, it will.” It’s a

self-fulfilling prophecy. If you expect that a resident meeting or call is going to be a disaster, it probably will be. But if you anticipate your own ability to pro-vide a good resolution and that the res-ident will walk away feeling good, then most likely that will be the outcome. Re-lationships with residents, like all other relationships, are built on communica-tion and shared experiences, which can lead to trust. Give them reasons to love you, believe in your ability to work well with them, and enjoy the result.

3. Dress to ImpressResidents want to be proud to show off

their home to friends and family. Now, more than ever, the appearance and con-dition of common areas is being evalu-ated when a person chooses to rent or to renew. Be obsessive about neatness and tidiness. Ensure walkways are swept, trash cans are emptied, cobwebs are

brushed away, and bare dirt is attended to. Your community doesn’t need to be brand new to look well kept. The same goes for you and your entire team. You’re part of the scenery, so take pride in how you present yourself. Clothing should be clean and pressed. Your hair and nails should be neatly groomed. Are your resi-dents excited to walk their guests around the community? Are they excited to in-troduce them to you (or do they steer them away)?

The point of this article is not to get you to scrap your event calendars or do away with contests and opportunities to celebrate what makes your community a great place to live. However, instead of planning events strictly to connect resi-dents to each other, plan events with the goal of the team connecting with the res-idents. Require team participation, and

set a goal of getting to know at least 5 residents you haven’t spoken with before.

Residents don’t “just” leave apart-ments. They most often leave people. Because our business is built on rela-tionships, our ability to build those re-lationships is going to determine the big winners and the colossal losers in our in-dustry. “Sense of Community” = “Sense of Connection with the Staff.” Build your relationships one resident at a time and you’ll suddenly find you’ve built a thriving community!

About the author: Jen heads up client support for SatisFacts and Apartmen-tRatings.com, by developing dynam-ic, practical and effective educational programs and resources, conducting resident feedback analysis, directing customer experience re-design, and pro-viding digital strategy coaching. Jen has over two decades of customer loyalty and process efficiency experience. A noted author, keynote speaker and highly fol-lowed blogger in the multifamily indus-try, Jen has spoken at such events as the NAA Education Conference, NAA Edu-cation Institute (NAAEI), AIM: Apart-ment Internet Marketing, and the Mul-tifamily Social Media Summit. Contact Jen at [email protected]

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The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

4



Desire to Buy Strong Despite Aff ordability, Economic Concerns

Although only half of surveyed households believe the economy is currently improving, nearly

all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream, according to a new quarterly consumer survey released to-day by the National Association of Real-tors®. Additionally, a newly-introduced index tracking the fi nancial outlook of households found that compared to ear-lier this year an increasing share believes their personal fi nancial situation will im-prove in the months ahead.

NAR’s inaugural quarterly house-hold survey, Housing Opportunities and Market Experience (HOME), tracks topical real estate trends, including cur-rent renters and homeowners’ views and aspirations regarding homeownership, whether or not it’s a good time to buy or sell a home, and expectations and expe-riences in the mortgage market1. New questions may be added to the survey each quarter to refl ect timely topics im-pacting real estate.

Th e HOME survey data reveals that an overwhelming majority of current renters who are 34 years of age or young-er want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 per-cent believe homeownership is part of their American Dream.

Lawrence Yun, NAR chief economist, says the survey’s fi ndings debunk the notion that young adults aren’t interest-ed in buying a home. “Despite entering the workforce during or immediately af-ter the worst of the fi nancial and housing crisis, the desire to become a homeowner appears to be a personal goal for a con-vincing majority of young renters,” he said. “Furthermore, there appears to be sizable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal rea-sons impacting many households.”

Th e top two reasons given by renters for not currently owning was the inabili-ty to aff ord to buy (53 percent) and need-ing the fl exibility of renting rather than owning (19 percent). When asked what would likely be the main reason for buy-ing in the future, renters cited lifestyle considerations such as getting married, starting a family or retiring (33 percent) and an improvement in their fi nancial situation (26 percent).

“A combination of factors such as ris-ing rents and home prices, limited sup-ply, repaying student debt, and getting married and having children later in life has more to do with the currently un-derperforming share of fi rst-time buyers than the idea that buying a home is not as desirable as it used to be,” adds Yun.

Households lukewarm about the U.S. economy

Among all households (renters and homeowners) in the survey, the results highlight a split between those who agree the U.S. economy is on the right track and those who disagree. Only half of respondents believe the economy is cur-rently improving, and 44 percent think the economy is actually in a recession.

Renters were only slightly more op-timistic about current economic con-ditions, with 57 percent believing the economy is improving. Regardless of their confi dence in the U.S. economy today, over three-quarters (76 percent) of those who don’t think the economy is improving still want to eventually buy a home.

“Th e promising stretch of job creation in several parts of the country in recent years has the housing market in 2015 on track for its best year of sales since the downturn,” says Yun. “However, that only half of surveyed households believe the economy is improving can be at-tributed to the fact that some areas have been slow to recover and wages have yet to grow in a meaningful way for far too many families.”

Adds Yun, “With roughly 26 million more people in the U.S.2 compared to the peak year of home sales in 2005 (7.08 million), the pace of existing sales would

likely be more robust if not for the econ-omy’s subpar growth since the down-turn and wage gains that have failed to keep pace with rents and home prices.”

Homeownership remains good fi -nancial decision, part of American Dream

Despite uncertainty about the econ-omy’s current performance, at least 84 percent of all households within all sur-veyed age groups and education levels believe owning a home is a good fi nan-cial decision. When asked if they believe this strongly or moderately, 76 percent who believe it’s a good decision feel strongly about it.

Additionally, at least 85 percent of sur-veyed households in each age category as well as across all education levels believe homeownership is part of their personal American Dream. Th e most appealing aspects of homeownership cited by those with this feeling include a place to raise a family (36 percent), owning their own place (26 percent) and a nest egg for re-tirement (14 percent).

Good time to buy, but skeptical about ability to obtain a mortgage

NAR’s survey found that more home-owners (82 percent) than renters (68 per-cent) during the polling period believe that it’s a good time to buy a home. Fur-

continued on page 7

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4 Faces of Leadership and the Importance of the Vision Th ing

Behavioral Strategist Explains How Any Leader Can Responsibly Boost Their Visionary Side

Whether it’s a presidential can-didate, a corporate executive or an NFL coach, people ad-

mire a leader with vision.Th ey like someone with a clear idea

of where he or she is headed, and who knows how to motivate others to accom-plish the goal.

But as much as people might like to say someone is a “born visionary,” in truth, vision is something we develop, not something we arrive in the world with, says Rob-Jan de Jong, a behavioral strat-egist and author of “Anticipate: Th e Art of Leading By Looking Ahead” (www.robjandejong.com).

“One thing that visionaries have in common is that they have an abili-ty to notice things early,” de Jong says. “Th ey recognize some sort of signifi cant change is happening and they make use of the opportunities it presents.”

Just identifying that a major change is afoot isn’t enough, though, he says. Th e visionary needs to connect the dots into a coherent picture that takes into ac-count future developments.

“Th at’s easier said than done, but it’s an ability leaders can develop if they are willing to work on it,” de Jong says.

Growing a leader’s visionary side therefore boils down to sharpening both the ability to notice things early and the ability to create coherence. In combina-tion, the abilities suggest four archetypes of leaders.

Th e Follower.Th is is someone who is neither good

at noticing things early, nor skilled at creating and communicating a coherent story from insights about what the fu-ture might bring. Th e follower may be an excellent manager, but don’t expect this person to inspire others or drive innova-tion.

“Being a follower isn’t necessarily a bad thing,” de Jong says. “Th ese people are oft en careful about their decisions and good at critical thinking, and in the short term that can work well. But their preoccupation with today keeps them from anticipating what comes next.”

Th e Trend Hopper.On the upside, a trend hopper has a

well-developed ability to see things early and is willing to embrace changing re-alities. Th ese are people who are quick to adopt new technology and among the fi rst to fantasize about how things can be

diff erent – even radically diff erent– real soon, de Jong says.

On the downside, trend hoppers ar-en’t adept at turning their early insights into a coherent story that justifi es an ac-tive strategic pursuit. Aft er seeing them chase several fl avor-of-the-month ideas, other people start to tune them out.

Th e Historian.Th ese leaders are adept at connecting

the dots and spinning a story that makes sense. Th ey cite patterns, facts and fi g-ures and make everything that’s hap-pened so far look coherent and intention-al. “When you listen to them, it all makes sense,” de Jong says. “But they have their eyes trained on the factually true past, not the imaginative uncertain future.”

Certainly, it’s valuable to have some historical perspective, he says, but you can’t let history cripple your ability to engage the future. Historians also oft en are cynics, ready to explain why things are they way they are and why your un-conventional idea won’t work.

Th e Visionary.Th is is the one to strive to be. A vision-

ary isn’t quick to hop on every fad, but also isn’t a naysayer about how things

might be done diff erently. Instead, says de Jong, the visionary takes a mindful, future-oriented perspective, balancing the need for a compelling future with the awareness of the dangers of becoming dogmatic and overly optimistic. Vision-aries are able to explain an imagined fu-ture in a way that fi lls people with energy and engages their imagination.

“A powerful vision isn’t just nice to have,” de Jong says. “It’s the most im-portant tool in the transformational leader’s toolbox. A leader’s personal imagination, inspiration and dedication are what will ignite the excitement in the people they lead.”

About Rob-Jan de JongRob-Jan de Jong, author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com), is an international speaker, writer and consul-tant on strategy and leadership themes. He serves as an expert lecturer at various leading business schools such as the Wharton Business School (USA), Thunder-bird School of Global Management (USA), Nyenrode Business University (The Netherlands), and v Business University (Turkey).As a behavioral strategist, he speaks, teaches and consults on executive subjects such as visionary leadership, infl uence, strategic decision-mak-ing, and innovation.

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DEAR MAINTENANCE MENPest Control & Preventative Care

Dear Maintenance Men:

How do I get rid of mice or rats? I have found droppings in the house and I’m not happy and I need a solution.

Annie

Dear Annie:

Please come down off that chair! We have written about dealing with mice and rat issues in the past and below is what we recommend if you want to get rid of the rodents yourself. Keep in mind that rats and mice are smart & conservative. Th ey are not risk takers. In the rat or mouse’s mind, a trap out in the middle of the fl oor is too risky to investigate. Rodents will run along walls, raft ers and other low exposure areas. Put the traps along these routes about ten feet apart. A good bait to use is peanut butter. Patience is king when trying to trap a rat. Place all your baited traps, but DO NOT set them for a day or two. Let the rat nibble at the bait dan-ger free. Th is last part is the hardest to do. However, patience will win out. If you rush ahead and set the traps and the rat triggers one and is not caught; he will remember! Also, avoid using traps de-signed for mice; it will only annoy the rat and he will be smarter for it. Th e same goes for using rat traps to catch mice. Th e trap is too big and when sprung may miss the mouse.

Using poison is another option. An-ticoagulant poison is very popular. Th is poison causes the rat’s blood to thin.

By Jerry L’Ecuyer & Frank Alvarez

It will make him thirsty and when he drinks water, he will bleed internally. When using this option, be sure to leave a saucer of water near the poison. Th e poison normally comes in bars that can be broken up into pieces. Remember ro-dents hoard, so just because the poison is gone, does not mean they ate it. Put more until they stop taking it. Th e local hardware store should carry this prod-uct, but it is best to go to a farm supply store. Th ey will have the best quality supply. Be careful with placement, so other animals do not eat this poison. Th e hardware store or farm supply store carry approved bait dispensers designed for rats or mice. Again, patience is re-warded. Before using poison bait, use crunchy peanut butter to let the rats get used to the bait station for a few days. Th en add the poison bait with a little bit of peanut butter.

Glue traps are also a viable option. It is important to use large rat sized traps. Put the glue trap along a known rat run-way, or along a ledge or raft er used by the rodents. It is important to nail or fasten the glue trap in place. Place a bit of pea-nut butter in the middle of the trap as an attractant. Happy hunting! Dear Maintenance Men:

I doing some long term preventive maintenance with my building’s indi-vidual 30-40 gallon water heaters. Each unit has a water heater and I’m not sure of the age or condition of each unit.

How long do most heaters last and what are some signs of imminent failure?

Bryan

Dear Bryan:

Th e chances of a number of heaters failing all at once are very slim. Th e cost of replacement can be spread a over pe-riod of time. Th e average life span of a typical 30 or 40-gallon water-heater is about 10 to 12 years, some may last much longer depending on use. A sign the end may be near is: banging noises coming from the heater, short hot water supply and long heater cycle times produc-ing lukewarm water. At this point you should start pricing a new heater. How-ever, if you fi nd water pooling at the base of the heater … replace it immediately, it has FAILED!! Dear Maintenance Men:

One of my maintenance chores I do is caulking and sealing shower/tub fi xture fl anges and shower walls. My problem is getting the caulking to dry before a resi-dent uses the shower. Any Suggestions?

David

Dear David:

A lot of people will say: “Just tell the resident not to use the shower till the caulking is dry”. Well it doesn’t work and by the time you are driving away from the building, your resident is al-ready taking a shower and your fresh caulking is washing down the drain. Your caulk should cure at least 24 hours

before use. Water based latex caulking is easy to use, but very susceptible to wa-ter until it is cured. Try using a silicone or polyurethane based caulking for do-ing tubs, showers, toilets, sinks or other wet locations. It tends to set quickly and will repel water during its cure time.

Another solution we have found works well with very busy showers is to remove all the fi xtures, including the showerhead & arm, valve handles and tub spout, be-fore caulking. (A bit extreme, but eff ec-tive) We then plug the showerhead and tub spout with a capped pipe. Th en caulk the tub/shower. We come back 24 hours later and reinstall all the fi xtures.

One more thought; if you have slid-ing shower doors for your tub, check the bottom track. If it is loose, do not caulk until the track is removed, cleaned and dried. Reinstall the track with new ad-hesive caulk to hold it down and caulk the edges to keep the water out.

Bio:Please call: Buff alo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultationFrankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075Certifi ed Renovation Company www.Buff aloMaintenance.com www.ContactJLE.comwww.Facebook.com/Buff aloMaintenance

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DIY Landlord ...continued from page 1 Desire to Buy Strong...continued from page 4

For example, Real Property Manage-ment research indicates that the typical DIY landlord earns an average annual income of $100,000. Assuming a 2,000 hour work year (50 weeks times 40 hours per week), the value of their time is $50 per hour. According to other research by the company, an average DIY landlord spends 49 hours per year for leasing and managing. With this time commitment, the value of the landlord’s time per rent-al is $2,450*.

Th e cost of professional property man-agement is signifi cantly less. Although property management fees vary across the country, a professional property manager typically charges 50 percent of one month’s rent for leasing a vacancy, and 10 percent per month for managing the property. For a $1,000 per month rental property, the cost would be $500 for leasing plus $1,200 per year for prop-erty management fee, totaling $1,700. Th is cost does not take into account the fact that property management fees are tax deductible, so the actual out-of-pocket expense is less.

Do-it-yourself landlords can avoid the cost, hassle and liability associated with managing a property by outsourcing the responsibilities and pain points associat-ed with property management to a pro-fessional property manager.

Property management professionals have the resources and knowledge to per-form thorough background checks on prospective tenants, document move-in and move-out condition of a rental, and they understand the Fair Housing Act and other landlord-tenant laws – all jobs in which costs can signifi cantly add up.

Th e Real Property Management re-search found that less than one third of self-managing landlords spend ade-quate time on every step of the leasing process, and skimp on things like cred-it history, criminal background checks and move-in documents. Many do not conduct criminal background checks or

contact previous landlords for referenc-es, which increases the risk of renting to an unqualifi ed tenant. Some also fail to conduct a true competitive analysis of competitive rental rates, creating risk of over-pricing a rental and losing income because of long vacancy periods, or un-derpricing the property which reduces long-term revenue from the property.

Other shortcuts frequently taken by DIY landlords include responsible rent collection and in-property inspections. Th is hurts cash fl ow, increases the risk of lost rental income and eviction, and allows tenants to fl y under the radar with lease violations like unauthorized tenants, pets, or damage to the property.

Whether it’s a carefully considered in-vestment or an ‘accidental landlord,’ not all DIY landlords realize the signifi cant cost and demanding lifestyle required as a property owner. Th e monetary costs may be easy to calculate, but what about the value of the hours and days spent on other management tasks? A professional property manager typically saves money for the investor, and can sometimes be the very lifeblood for success and profi t as a property owner.

*Th e amount of time can be signifi cantly higher for older homes with more main-tenance needs, or properties that require

updating before leasing.

Authored by: Robert Pifke, Chief Marketing Offi cer for Property Management Business Solutions, LLC, the franchiser of Real Property Management. About Real Property Management Real Property Management is a franchise organi-zation owned by Property Management Business Solutions, LLC, a privately held corporation based in Utah. With over 25 years of industry expertise, Real Property Management offi ces provide full-service residential property management for thousands of investors and rental home owners from more than 260 independently owned and operated locations throughout the United States and Canada.

thermore, of those who thought it was a good time to buy, 64 percent felt strongly about buying. Among current owners, 61 percent believe it is a good time to sell a home, of which 53 percent felt strongly that it was a good time to sell.

According to the survey, roughly two-thirds (65 percent) think it would be very or somewhat diffi cult to obtain a mortgage. Furthermore, there are dif-ferences among income brackets. Rent-er households making between $30,000 and $40,000 were the most likely to be declined a mortgage (10 percent), while 51 percent of those who make more than $50,000 a year have not tried but feel confi dent they would succeed in getting a mortgage. Overall, fi ve percent of rent-ers have recently tried and failed to ob-tain fi nancing for a home.

By nearly double the amount of oth-er responses, the most common reason homeowners purchased a home was for lifestyle changes such as getting married, starting a family or retiring (35 percent). Eighteen percent said the desire to settle down in one location infl uenced their decision to buy, and 15 percent cited an improvement in their fi nancial situation.

Direction of home prices, fi nancial outlook on the rise

Refl ecting the ongoing recovery of home values throughout most of the country, 89 percent of respondents said home prices in their communities have either risen or stayed the same in the past year. Looking ahead toward the next six months, 91 percent of respondents be-lieve home prices in their community will increase or stay the same.

Th e HOME survey also calculates a monthly Personal Financial Outlook Index3 measured by household type, age, income and type of location. Since tracking began in March, the index representing all households has slow-ly trended upward to its highest cur-rent reading in December – refl ecting stronger confi dence that respondents’ fi nancial situation will be better in six months. Currently, renters, younger households and those living in urban areas are more optimistic about their fu-ture fi nancial situation.

“Young adults, who make up the majority of all renter households, are typically more optimistic about their future,” adds Yun. “As more of them settle down and begin plans to start a family, the allure of owning their own home as well as the long-term fi nancial stability homeownership provides will drive their emergence into the housing market. However, the extent to how fast this occurs will greatly depend on more entry-level housing supply coming onto the market and needed improvements in aff ordability conditions.”

IT’S JUST SMART BUSINESS

CASE STUDIES ABOUT MULTIFAMILY PROPERTIES

Energy Trust has helped hundreds of multifamily property owners and managers get more from their energy by saving them thousands in operating costs and improving their bottom lines.

“We’ll save over $16,700 in utility bills each year because we upgraded to a new energy-ef cient,

water-cooled chiller that keeps our 382,000 square-foot building at a consistent temperature

all day. Plus, Energy Trust of Oregon gave us over $47,900 in cash incentives just for upgrading.

Marty Rowe, director of facility services

Holladay Park Plaza Assisted Living, Portland, Oregon ”+Get more from your energy. To learn more visit www.energytrust.org/multifamily or call 1.877.510.2130.

Serving customers of Portland General Electric, Pacifi c Power, NW Natural and Cascade Natural Gas.

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rental housing journal valley january 2016

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